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AUSTRALIAN BANKERS’ ASSOCIATION STRENGTHENS TRANSACTION SERVICES AND BRANCH CLOSURE PROTOCOL
Sydney, 13 August, 2004: The Australian Bankers’ Association (ABA) has strengthened the Transaction Services and Branch Closure Protocol.
In 2001, this Protocol was adopted by ABA member banks to provide to broader rural Australia, ongoing face-to-face banking services for personal and small business customers after branch closure.
In 2004, after listening to community concerns, and reviewing the evidence presented to the Parliamentary Joint Committee on Corporations and Financial Services’ Inquiry ‘Money Matters in the Bush’, the ABA has increased the requirements for banks to follow when closing a branch.
David Bell, Chief Executive of the ABA, said: “No other banking industry in the world has given this level of commitment to virtually all rural and remote areas, to provide banking services through franchising arrangements with the community, agency arrangements with local businesses and Australia Post, and the provision of a range of services including in-store facilities, where it is commercially viable to do so.”
“Banks recognised the need to adopt this Protocol that gives communities even more notice and ensures we explain the alternative banking services that will be available, so that people can be better prepared for the changes as they come.”
The ABA has now amended the Protocol in the following three ways:
1. The three month notice period of branch closure has been increased to six months. During this time, a bank will explain how the alternative banking service it will offer will work and formally address a community’s concerns about potential problems with implementing the service;
2. Where a bank does not provide an alternative service, it will produce a Community Impact Statement, six months prior to the closure of the branch. This was not previously required under the Protocol. A model statement is to be developed in consultation with government and other interest groups – a process to be initiated by the ABA; and
3. Where a bank does not provide an alternative banking service, fees associated with transferring accounts (that were accessible at the branch to be closed) to other financial institutions that offer a transaction service at the same locality, will be waived. The fee waiver only applies where the bank does not provide the alternative service described previously. This was not previously required under the Protocol.
The ABA will spend the rest of this year working with Governments and other interest groups on developing the model for the Community Impact Statement. This is in readiness for the revised Protocol’s start date of 1 February, 2005.
Mr Bell said: “It should be noted that many banks have either maintained or expanded their regional branch networks. This is also borne out in the latest Australian Prudential Regulation Authority’s points of presence survey for 2003.”
“Despite continued population decline in many country districts, rural banking services are holding up quite well, recording small gains in some areas.”
Transaction Services and Branch Closure Protocol.
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
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